Long Island, Suffolk & Nassau Bankruptcy Attorneys

New York Foreclosure and Debt Management Lawyers

Bankruptcy is often viewed as complex, and there are many myths regarding the subject. At Jacoby and Jacoby, we welcome you to contact us to discuss your particular situation with an attorney at our firm. We have also included some frequently asked questions regarding bankruptcy below, for your review.

At Jacoby and Jacoby, our attorneys have over 50 years of combined experience in dealing with bankruptcy cases in New York. We have 6 office locations and handle cases throughout Suffolk, Nassau and Long Island. If you are looking to work with an experienced and dedicated Long Island bankruptcy lawyer, look no further than Jacoby and Jacoby.

New York Bankruptcy FAQs

What is bankruptcy?
Bankruptcy is a legal proceeding wherein an individual is allowed to seek relief from overwhelming debt. When someone cannot pay their debt, they may seek to file for bankruptcy under Chapter 7 or Chapter 13 of the bankruptcy code. By filing for bankruptcy, creditors must stop all actions to collect debt from you. This includes harassment, wage garnishment, repossession and freezes on your bank accounts.

What is Chapter 7?
Chapter 7 bankruptcy results in a liquidation of the debtor’s non-exempt assets. A bankruptcy trustee will sell assets and the proceeds of this sale will be used to pay creditors. Chapter 7 is often a good option for those with little or no income, little or no surplus of income, who do not own a property or who have little or no equity in their property. Many Chapter 7 cases are referred to as “no asset” cases because the individual filing for bankruptcy does not have assets that qualify for liquidation.

Can I keep my car?
It is possible that you can keep certain property, such as your car, even when going through a Chapter 7 bankruptcy. This is referred to as a “reaffirmation of debt.” In essence, you agree to continue to make payments or to pay off the property and will then be able to keep it.

What is Chapter 13?
Chapter 13, also referred to as “Individual Debt Adjustment” or a “wage earner’s plan,” is a good option for a person who has a steady income. The debtor is allowed to keep his or her assets and property and makes an agreement to make payments to a Chapter 13 bankruptcy trustee, who will then distribute those payments to creditors.

How will bankruptcy affect a foreclosure?
Any bankruptcy proceedings may result in a stay of foreclosure proceedings. For a Chapter 7 bankruptcy, this is not automatic, and foreclosure proceedings will continue upon the conclusion of the bankruptcy. For a Chapter 13 filing, there will be an automatic stay of all foreclosure proceedings. Additionally, the debtor may be able to keep the property by making mortgage payments throughout the life of the Chapter 13 bankruptcy or by seeking a loan modification.

How long will bankruptcy proceedings last?
For a Chapter 7 bankruptcy case, this may last 4 to 6 months. For a Chapter 13 case, this may last 3 to 5 years, as the payment plan is part of these proceedings, and the payment plan usually lasts for that amount of time.

How long will a bankruptcy stay on my credit?
An individual’s filing for bankruptcy may remain on his or her credit report for up to 10 years. However, if the debtor successfully completes the payment plan in a Chapter 13 bankruptcy case, this may be limited to 7 years.

For more information on filing for bankruptcy in Long Island, Nassau and Suffolk, New York, contact a Long Island bankruptcy attorney at Jacoby and Jacoby today!